Profit First: Setting Up Your Bank Accounts For Profit
Chapter 5! GET READY FOR A GREAT YEAR!
Step 1: Go back to the beginning of the chapter and complete all of the “Day One” tasks outlined there: notify your accountant, set up your accounts (if you haven’t done so already), and make your first Profit Account deposit or transfer. Look at your bank balance in your operations account; subtract any outstanding checks and payments you have from that account, divide the remainder into your accounts based on your TAPS.
Step 2: Start a “celebration list”: come up with ideas for how you to spend your quarterly owner’s distribution. Include small treats and big indulgences. Post the list where you can see it, for inspiration and motivation and as a reminder when the quarter comes around and you convince yourself there are more practical uses for the money.
Step 3: Based on the system Mike shared in this chapter, revamp your to-do list and start using it immediately. You can download blank Profit First To-Do forms, from the Resources tab at MikeMichalowicz.com.
Take a look at your expenses; Mike instructs us to cut our expenses by 10%. You can easily find your first 10% in cuts by doing the following:
Cancel whatever you don’t need to help your business run efficiently and keep your customers happy.
Negotiate every remaining expense, except payroll.
While you are cutting your expenses, implement the Task Management List to increase your revenue over the next 60 days by serving your existing clients more efficiently.
For today’s selected podcast/blog click here:http://www.mikemichalowicz.com/?powerpress_pinw=8308-podcast
Matt Shoup joins Mike Michalowicz, Kristina Bolduc and Chris Curran to share his story of how he went into his business with $170K of debt and turned it into a multi million dollar practice – and in the process became affluent on his own accord. In this episode Matt shares the secrets to becoming successful
To Whole Businesses ~ Constance
I love that Mike has all the Profit First worksheets on his website, you can download them by clicking here.
You can also get access to Mike’s Wall Street Journal articles, book excerpts, and entrepreneurial tips by subscribing to his website. He has the first couple of chapters of Profit First for free!
Meet me on March 15th for a discussion of the book 'Good to Great' https://www.meetconstance.com/upcoming-events/beverlyhillsbookclub
Pick up a copy of February’s book 'The Goal: A process of Ongoing Improvement'